How Does Seasonality Create Fluctuations in a Firm's Net Income

question 68

Multiple Choice

How does seasonality create fluctuations in a firm's net income over a year?

• A)Cost of goods sold will rise and fall along with sales,while administrative and other costs will remain relatively steady.
• B)Cost of goods sold will rise when sales fall,and vice versa,while administrative and other costs will remain relatively steady.
• C)Cost of goods sold,along with administrative and other costs,will rise when sales fall,and vice versa.
• D)Cost of goods sold,along with administrative and other costs,will rise and fall along with sales.
• E)Cost of goods sold,along with administrative and other costs,will remain relatively steady.

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Definitions:

Sexual Activities

Behaviors involving sexual intercourse or other forms of sexual expression between individuals.

Teen Pregnancy

Pregnancy occurring in a young woman between the ages of 13 and 19.

Correlates

Correlates are factors or variables that are found to have a statistical relationship with each other, suggesting that when one changes, the other is likely to change in a predictable manner.

Commercialization

The process of bringing new products or services to market, focusing on maximizing profitability.